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Group Member:-
Azlina Haji Omar
Khairul Bani Ismail 810928
Mohd Mahadzir Mohd Mohtar 810948
Noor Azam Alias 810962
Seven Common Misconceptions
About Human Resource Practices:
Research Findings Versus
Practitioner Beliefs
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The Strategic View
of Human
Resources
Employees are human assets
Increase in value to organization and marketplace when
investments of appropriate policies & programs are
applied
Effective organizations recognize that employees have
value
Much as organizations physical & capital assets have
value
Employees are valuable source of sustainable competitive
advantage
Seven Common Misconceptions About Human Resource Practices
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Sources of Employee Value
Seven Common Misconceptions About Human Resource Practices
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Sources of Employee Value
Technical Knowledge
Markets, processes, customers, environment
Technical Knowledge
Markets, processes, customers, environment
Ability to Learn and Grow
Openness to new ideas
Acquisition of knowledge & skills
Decision Making Capabilities
Motivation
Commitment
Teamwork
Interpersonal skills, leadership ability
Seven Common Misconceptions About Human Resource Practices
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Findings
HR practices directly related to profitability & market
value
Primary reason for profitability:
Effective management of human capital
Integrated management of human capital can result
in 47% increase in market value
Top 10% of organizations studied experienced 391%
return on investment in management of human
capital
Seven Common Misconceptions About Human Resource Practices
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HR Value Chain
Seven Common Misconceptions About Human Resource Practices
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Model for Management
Success
Seven Common Misconceptions About Human Resource Practices
Strengthen key
relationships
Customers
Employees
Shareholders
Leverage downtime
Use variable-pay
Address
neglected areas:
Infrastructure
Marketing
Operations
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Model for Management
Success
Seven Common Misconceptions About Human Resource Practices
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Seven Common Misconceptions
1. Conscientiousness is a better predictor of
performance than intelligence.
2. Companies that screen job applicants for values
have higher performance than those that screen
for intelligence.
3. Integrity tests dont work well in practice because
so many people lie on them.
4. Integrity tests have adverse impact on racial
minorities.
Seven Common Misconceptions About Human Resource Practices
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Seven Common Misconceptions
5. Encouraging employee participation is more
effective for improving organizational performance
than setting performance goals.
6. Most errors in performance appraisal can be
eliminated by providing training to managers on
how to avoid them.
7. If employees are asked how important pay is to
them, they are likely to overestimate its true
importance.
Seven Common Misconceptions About Human Resource Practices
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1. Select new employees on both intelligence and
conscientiousness.
2. Assess intelligence and conscientiousness
before values.
3. Define the values that are important and assess
them through carefully developed, valid
procedures.
4. Use integrity tests with ability tests for high
predictability.
Seven Common Misconceptions:
Implications
Seven Common Misconceptions About Human Resource Practices
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5. Develop compelling goals; enlist participation
and support it through rewards.
6. Training and feedback are important, but errors
are difficult to eliminate. Top managers should
serve as role models in quality of performance
reviews.
7. Attitude surveys are subject to biases; study
behaviors as well as attitudes.
Seven Common Misconceptions:
Implications
Seven Common Misconceptions About Human Resource Practices
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Effective HRM Practices
Seven Common Misconceptions About Human Resource Practices
Employment Security
Selectivity in Recruiting
High Wages
Incentive pay
Employee Ownership
Information Sharing
Participation &
Ownership
Self-Managed Teams
Training & Development
Cross-Utilization &
Cross-Training
Symbolic Egalitarianism
Wage Compression
Promotion From Within
Taking the Long View
Measurement of
Practice
Overall Philosophy
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Effective HRM Practices
Seven Common Misconceptions About Human Resource Practices
Very few firms will engage in all
practices
While these practices are important for
success, there are other determinants
as well
Downsides exist
Requires more involvement and
responsibility than some employees want
Managers & others may resist them as well
Turnover may result
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Defensible Selection
What is validity?
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So how often do
these lawsuits
happen, anyway?
Defensible Selection
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Ehh..whats
the worst
thing that
could happen?
Defensible Selection
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But validation is so expensive!
$
$
$
$
$
$
$
Average cost of content validation: $5-20K
Median 2003 compensatory
award in discrimination case:
$232K
Defensible Selection
Median settlement in discrimination
case, 96-02:
$50-70K
Sources: Seberhagen (1990); Jury Verdict Research
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Firstreality
No selection system is perfect


Someone can always complain
Defensible Selection
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How to Protect Yourself
1. Job analysis, job analysis, job analysis
People will continue to measure the wrong things as
long as they fail to define what they want to measure.
- Guion (1998)
Defensible Selection
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Electronic newsletters
www.elinfonet.com
www.ahipubs.com
hr.cch.com
www.blr.com
How can I keep
up on all these
changes in the
law?
Defensible Selection
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Defensible Selection